tv Nightly Business Report PBS September 13, 2018 5:00pm-5:31pm PDT
>> announcer: this is nightly business report. with bill griffeth and sue herera. in the path, the winds pick up on c theolina coast. as local businesses close up shop and hope the disruptions won'tast long. how big is too big? the ftc holds hearings to figure that out and eventually decide whether big tech needs oversight. giving back, the world's richest man makes the biggest charitable ever at $2 billion. those stories and more ton on nightly business report for thursday, september 13th. and we do bid you good evening, everybody. and welcome. it wor a recipe gains on wall street today. first, trade tensions continued to ease. then, inflation concerns were tempered once again. and apple shares recovered from
yesterday's selloff. you mix it all together and stocks finished the session on the upside. the dow industria average advanced by 147 points today, back above th26,000. nasdaq added 59 led by apple and the s&p wasp by 15. but whil stocks were higher today a influential investo says the bull market is in its late innings. and he sold som of h stock holdings. appear loosa management david teper called it a tricky market and cited the trade war with china in particular. >> if we do the tariff onhina that makes it tough on the market here just going forward. i don't know if that's an inning question or not an innines on but it gets to valuations and where we should be if we put ariffs i'm not saying we shouldn't or should t just factualt's the case. i don't know how that's in the market. the other thing if we don't have ro then webly have you know the question is how fast will the economy go? beuse china is stimulating and they are because they think the tariffs areth coming.
might have a factor of pushing us into higher interest rates. it's getting tricky at this point in time. >> teper says stocks could drop 5 to 20%f trade tensions between the two -- the world's two largest economies increase. in the meantime oil prices fell amid talkhat continued trade disputes could contendant demand as supply tightens. the international energy agency warned that global economic risks mount especially in keyng emer economies. and at today's settlement the price of domestic crude dropped it.5%. m >> one of thet troubled of the emerging market economies for investors in recent months has been tury. an today that country' central bank finally took action which raisin interest rates sharply. our reporter is in istanbul tonight. >> reporter: another day of wild volatility for the turk irk lira following a highly anticipated
central bank decision to raise rateoutstripped expectations and sent the current iscy lower 5%. wiping out earlier gains from the comments from the president where he slammed the central orbank and called a rate cut. it's the latest in a tit-for-tat between the central bank and t government that raised questions about monetary policy autonomy in theountry where the currency weakened 67% against the dollar yea but many economists now predict that low issing growth could trigger asi rec as early as next year. s&p now anwar warns t economy could shrink by a third the lower level than 2006. the dropthe lira hand cease the lose in the billionaire of turkey. dynamite that move international investors remain worried. after 15 years in offers. president erdogan has tightened the grip on power. appointing his son-in-law as minority of finance and himself ashe chairman of the sovereign welt found. while many say the rate rise is ove in the right it may not
be enough to stabilize the currency against the geopolitical head winds. had will campbell innb is. here at home investors watch the track of hurricane florence and trying to figure out ifhe damage will be severe enough to impact the stock market. according to cfra during the most expensive storms the s&p 500 fell.2%, the month after the hurricane was formed. the index was nearlyer 4% hi in the subsequent three months. h hricane florence begun lashing the carolina coast. we have two reports for you tonight. contessa brewer covers the myrtletions under way in beach, south carolina. but we begin tonight with jackie deangelis in the path of the home in carolina beach, north carolina. reporter: the wind is picking up opinion and the observer. waves are making their way up to the dunes, all ahead of the arrival of hurricane florence. the powerful capturing 2 storm is expected to crashown on
wilmington, north carolina tomorrow. with a storm surge of 10 to 15 feet as well as up to 40 inches of rain. floodsing is the number one safety concern as residents ribusinesses and autes make final preparations. so is l thes of pour. >> duke are duke energy started to sh the new bnsic pourp plan. storm surge in this area predicted at 13 feet. th also to 2 million of 4 million customers should brace for auto ajs lasting days or weeks. as experience in past storms, power outages that are long are disruptive and dangerous. >> dukerg e and our electric co-ops are estimating power losses in the millions.ie and famil need to have emergency supplies ready. >> while lives are the most valuable asset going into florence. property damage will be surveyed after. estimates suggest this storm could cost between
$20,000,000,030,000,000,000. core logic says the worst-case scenario could elevate is to $$170 billion. for perspective hurricane ike hitting tex y tenrs ago today was also a category 2. it caused $40 billion in damage. the fear is palpable and the stakes are high. >> there is nothing we can do here. when winds get off three digits, the own thing you can do inside the house is die. you can't do anything else. >> we are sying. we liv on the trent river in trent woods. and we are going to stay and -- i think we can take up to 16 feet of water. i think we'll be okay. >> the storm was expected to cast a wide net. d once the outer bands arrive and the rain i startst won't stop. for days. for nightly business report, jackie deannalis. carobeach, north carolina. and now to contessa in myrtle beach. zblrp up and down the carolina coastline, this is a scene that's repeated over and over.
flhts cancelled, empty ticket counters. for people who have not yet f the arrival of hurricane florenacce, oev tt runng out of options. >> we didn't realize the flight was cancelled because we weren't notified. we turned in our rental vehicha and w no way to get out of here. >> kerry and ron flew toe myr beach for vacation lastnd weeke. the first flight in 35 years. now they are stuck and can't escape back to pittsburgh. >> now what? what am i -- what am i going to do? what am i supposed to do here now? i don't have a vehicle. i don't have nothing is open. i can't check in anywhere. whatever. >> as hurricane florence bears down on t south carolina coastline, visitors and residents have limited options. with mandatory evacuation orders, many businesses have been closed for days. a waffle house lockedoa oed sup a rare sight.
the company tweeted out a picture of its command cente and it has the waffle house index. green everything is open plenty of food and electricity. yellow, operating on limited supplies andor gener power. red, closed. it's a gauge even the federal government monitors in judging disasterer recov amy has owned the pan american pan cake house for 35 years.as sheeen through tough storms and is monitoring florence. like so many other business owners she depends on the tourism dollars from nearly 19 million visitors coming annually. >> financially it makes it difficult for everyone. not just the business own all the employees. they are not making a living either. you know, so the evacuation is definitely hurting the lower beach. >> she stigs to stay open gives her opportunity with the locals. many public stores stayed open until mid-amp for those picking up last minute supplies those
intent on riding out the storm. >> i'm prepared to house people, any dogs for six t>>eight weeks. shelters are g open. butting to them now is the challenge opinion the wet mores got at lift with law enforcement and lucked o with a hotel room at the last minute. forecasters warn of dangerous flooding w lhg-lasting rainfall and a storm surge as high as 13 feet. and authorities insist now is the time torace for the impact of florence. in myrtle beach, south carolion, i'mssa brewer for nightly business report. well, the threat of the hurricane has also caused home builder stocks to fall. the concern is the catastrophic flooding could cause delays in completing from the fourth quarter to the third and causing new order gro slow in the current quarter. s a result shares of polt group, dr horton and toll brothersy lower in today's trading. the number of americans filing for unemployment benefits
remains at thel lowest l in nearly half a century. 1,000l claims dropped by to a seasonally adjusted 204,000, providing mvidence that the labor market is at or eear full employment. >> and as mentioned earlier in program, a key inflation l gauge ross than expected in august. the consumer price index increased ,just.2% last mon fomg the pull back in producer prices we told you about an increase in the cost of gas and rents were offset by declines in health care and apparel costs. and even as the enomy strengthens, the financial crisis that started ten years ago remainsresh in investor's minds. and that means many are always on the lookout for the next crisis. and as bob pisani reports it may unexpected place. >> could a cyber-attack be the cause of the next financi crisis? the big question. imagine this. a criminal gang or a state ictor hackoed a central bank or a
custodial bank, or a clearing system used to settl o stock bond or derivative trades. theris not many of the firmth are systemically important. the operations of one or more of the firms are dramatically disrupted to the point the serves are shut down. key data is damaged or destroyed. it's diffilt to replicate the services the firms provide. so the ripple effect, and other financials services firm. ppis could . on wednesday the deposit torrey trust and clearingcorporatio providing clearing and settlement for u.s. financial firms, released a report saying cyberthreats may become the single most important near-term threat to financial stability. that's pretty z sowers. everybody agrees the next financial crisis isn't going to come in the same form as the old one. but figuring out where it could come from is hard. aye credit guys it's going to be caused by excessive debt. the regulators say it could happen if we weaken the regulatory powers too much. the traders say fragmented markets and the rise of passive
investing could cause a crisis. economists w talk about trade tensions and rising nationalism and threats to longstanding international alliances like nato or the european union. that couldse a crisis. who is right? maybe they're all right. but a lot of peoe are taking this cyber-attack as a very real possibility and a real problem for the financial system. a similar report by the way came out from theffice financial research back in december. saying a large scale cyber-attack could disrupt financialnetworks, threatening the entire system and the broader economy. for nightly business report, i'm bob pisani at the ne stock exchange. >> time to look at the upgrades and downgrades we zbin request intel upgraded from under form at northle capital markets. the analysts cited the stock 20% pullback from recent highs. price target is $46. that stockose more than 1% to
45.5 meanwhile snap was upgrated to hold fromh pivotal resea citing the longtime potential saying it outweighs near term ricks we've heard that price target $$9. finishing todayt $9.35. way fare wasng dded from neutral from buy at bank of america merle link. the analyst i forecasting a deacceleration in froegt growth and rising investmt costs. the price target is $160. the shares fell almost 1% to 148.04. darten restaurants sigh saw the target raised from to $140 fl $125 at argue us research. abilities says the initiatives used at olive garden could be used at other restaurants. the remaining abides the stock a fraction to 118.85. >> still ahead, the fda calls vaipg an epidemic. but what exactly is vaipg?
and juul?ping an epidemic. but what exactlyjus vaping? an? big tech has gotten the attention of the federal trade commission. the agency is now holding a series of hearings to examine whether some well-known companies are in fact monopolies. ands as comes a skroutny from washinon grows. the julia boisterousen has more on the story. trade commission wants to look at whether changing technologies demand changing regulation. the ftc holding two days of hearingens onti comon and consumer protection in the 21st century. >> today our most difficult consumer protection issues revolve the usef and abuse of
logical kpanlts. >> a series of panels examining whether the tech giantsre month op lies google with dominance of search facebookth 2 billion monthly users andit amundsonen w the trillion dollar market cap and transformation of reta land cape. all companies and peers access to consumer data raising questions about whether data privacy needs to be regulated differently. >> privacy is one aspect. that's something the ftc wants to look at closer. they have always revised t rule fre to time. this might be another moment to clamp down looking at what the h done with google and facebook. and they might -- the htftc m adopt similar rules or come closer to the e ufrmt thinking about prief. >> today the hearings come aftet thenational internet association the lobbying organization representing tech giants release suggestions for federal regulations around dat privacy. np in her testimony on hill facebook ceo sheryl sandberg saying she believes regulation is evitable.
t that she hopes it's down in a way that protects consumers also enabling companies to continue to innovate and provide usefulservices. >> to the game is how much can they participate in that decision making? where will the lobbyist be able to get their which in to help craft the new rules look like? they are going to accept it. the gameuc is how influence can they have over what that these new rules look like. >> it's not just the ftc and congress looking closer. attorney general jeff sessions an eportedly preparing investigation into social media coanies for censership, amid growing concern that the tech giants are biased against conservatives. rtheulating impartial alt has never done for nightlily business report jewely bartzin in los angeles. wal-mart a big push into ecommerce a couple yearsgo when it purchased jet.com. now the world's largest retailers wants to remake the shopping site and shift folk. courtney reagan explains. >> reporter: jet.m is getting makeover.
the site began as a low cold front retailer allowing shoppers to pay with a debit card or o waive returns save money. the step part of the offering is no longer main message. two years after the purchase of the company for $3 billion wlmt is making a renewed push for younger affluent city shoppers. >> wfohave sed the business and the urban consumer. it's a very customer-focused business that we are building. and we know that there is an opportunity to build something that's ver different from other people in other competitors in the city. >> but reports suggest jet's traffic is declining, increasing the need t tur the tide. to do that, jet is adding popular brands like nike. customers will also be able to buy from local businesses like all wyhers bak in new york city. fd in the big apple jet.com is promisingter grocery delivery options. taking a direct aim at competitors whole foods, target and fresh direct. in allows jet's part compa
wal-mart to reach city shoppers it otherwise wouldn't and get em, an delivered to important part of wal-mart's growth strategy. >> being part of the wal-mart u business i was access to the scale which helps us with pricing and forhe products for consumers. and also the fraz that we have at sits behind the business. >> but questions remain whether jet.com's redesign will help wal-mart in itset ongoing coion with amazon. for nightly business reports, i'm courtney reagan. kroegerame store sales rise less than expected. and that's where we begin tonight's market focus. the nation's largest supermarket operator blamed the overall revenue miss on the transition to new store layouts and an change product mix. utoger did top profit estimates tu o did see margin weaken as price cuts and higher freight cost pressured results. kroger shares were off nearly 10% to 28.50. rsheys is growing the snack
poefrmt. ce maker of reese he is peanut butters said it was buying pirate brands for more than $$400 million under the deal hershey gain control over pirate's booty popcorn and smart pufrs hershey shares up a fraction to 106.60. meanwhile the new york posts activist hedge fund hr rauras ae examamassed a stake? contraries's entertainment with a push to push the sell of itself process if they won't consider a sell then they say hgvora would like it to sell significant asss. shares of casey countries arso rose 1045. shares and restoration har nwake spiked o the ceo bought 8,000 rh sharasmitsing to $1 million worth of stock. rh shares finished up 3% to. 135. after the bell sears reported a drop in same store sales.
that improved from the previous quarter. the retailer initially planned to release results before the market opened. but then postponed. sears says it's still seeking ways to return to profitability. shares initially rose in after hours but fished the regular day down 9% to $1.21. and also after the bell, adobe said stronger sales in its creative and do you mean cloud divisions helped earnings beat expectations. the company also gave upbeat revenue guidance for the current quarter. separately, cnbc is reporting thats adobe in talks to buy a marketingheld cloud software company in an effort to better compete with rivals microsoft and oracle. the report said adobe could pay upwards of $1.5 billion. adobe shares were volatile in the after hours sessions but finished the regular day up a fraction to 268.52. ce> yesterday we told you about the cs the fda has raised about the growing use of
ecigarettes by minors. and today we look closer at look at juul, the company dominatingh the market w valuation of about $16 billion. adidi roy has the report onight. >> reporter: it'eek, stylish and looks more like a usb device than a vaporizer that's one reason which why the ecigarette company juulo is popular among teens. those are one of the movie popular products. >> on my college campus it's popular. >> the fda says teenage use is to rampant it's ep iemic. >> the steps they could do to perhaps even shutdown the online sites. s i'm note they will do that. but we are willing to step in and remove these flavors from nie mec we think they are one element of what's making the products appealing to a youth. >> juul is one of five ecigarette companies ordered y the fda to submit plans in the next two months howdi to ourage teenage use of products. in a statement responding to the
skmirgs's remarks, the company says, jl is intended for current adult smokers only. we can't be more emphatic on this point. no minor or non-nick teen user should ever try juul. the founders said is he they started the company to get peop to quit smoking. >> we always intended to build the company of with thea i of making cigarettes obsolete. >> pofl ps. . they include non-cigarette smokers since t company spun off growth sky rocketed. juul ownsrk 72% of the . sales increased 8 oh oh 0% in the last year. d the company i valued at more than $16 billion. but critics say the company's success rides on the youngest users. its early slick social media ads seem to target young people. juuleplaced the ads but the craz among youth remains. >> it's definitely are more
popular among the youth. >> my nephew is in junior high. >> really. and he told me about juul before i had to hear about juul. >> are youou se >> yeah. that's what kids are doing. >> reporter: unlike traditional cigarettes. e-cigarettes don't burn tobacco. they have cartridges filled with nickts teen making parworry. >> i have a 22-year-old daughter and a lot of her friends use the products. and i warn them that there again you will be addicted to the tobacco. >> experts tell us some of the side health effects of nick teen among youth includea ast and there is evidence link going to lung disease. the fda says it will release data on the growing use of e-cigarettes among teenagers and the agency could order companies to change their sales and practices.ro o adidi roy, san francisco. coming up, therl s richest man spends billions to give back.
general motors is recalls one million pickup trucks and suvs that could suffer from a steering malmungs. the auto maker hasdentified 30 crashes and two injuries connected to this defect. says there has been no deaths though. the recall cover certain chevy you had sifrd an on gmc pickups whels the chevy tahoe, yukon and cadillac he is ka lazed from the 2015 model year. the ceo ofmundsonen is the world's richest man and now he nnounces the creation of a multibillion-dollar charitable fund and outlining the
philanthropic plan. >> the world' richest man gives away more money. jeff bezos and his wif launching a philanthropic fund calling it the day one fund with a $2 billion commitment. a fund which focuses on two things, the homeless problem and education for preschoolers in ne. in the announcement bezos said the day one family fund will work with existingnon-profits to help homeless families and modelled after the famous mary's place non-profit i seattle where bezos lived and which has a rising homeless problem. the day one academy fund will launch scholarship preschools in underserved communities. he wrote he will use the same set of principles that drive amazon opinihe gift follows criticism about bezos's fortune at $164 billion compared with the low pay for amazon employe and coming after increased scrutiny of phasanthropy. het signed a giving pledge.
until this announcement he had given ay less than $170 million. this month he announced a gift of $10 million to superpac helping to elect military vets to congress. last year he gave $33 million to a scholarship fund for dreamers. bezos solicited ideas on twitter for philanthropy opinion tweeted it gilles me with grad attitudem and optimo be part of species so ben on self-improvement prlyess. for nigusiness report, robert frank. and that's it for us tonight. i'm sue herera thank you forg join us. >> i'm bill griffeth. see you tomorrow.
>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation, kovler foundation,ursuing solutions for america's neglected needs, and purepoint financial. >> how do wehape our tomorrow? it starts with a vision. we see its ideal form in our mind, and then we begin to chisel. we strip away everything that y to reveal new possibilities. at purepoint finan al, we have